​​​​a) List four elements that make up the external environment of business​​​​​​​   b) State two…

​​​​a) List four elements that make up the external environment of business​​​​​​​

 

b) State two responsibilities each that a business owes the following:

  • Customers;
  • Employees;
  • Investors;
  • Society.
Explanation

(a)     Elements that form the external environment of a business:

(i)      Political
(ii)      Social
(iii)     Economic/financial

  1. Technological
  2. Cultural and Religious

 (vi)     Infrastructural
(vii)    Legal
(viii)   Demographical
(ix)     Natural/ecological condition                                     

(b)      (I)      Responsibilities of business to customers

  • Prompt attention to customers’ complaints.
  • Provision of safe and quality products that satisfy customers’ needs and wants.
  • Provision of adequate information on the use of a product.
  • Provision of after-sales services to customers especially technical products.

 

 (II)     Responsibilities of business to employees

  • Compliance with legal requirements relating to the employer-employee relationships.
  • It must pay employees their wages and salaries timely.
  • It must ensure that enabling and conducive atmosphere prevails at workplaces to enhance productivity.
  • It must assist employees to advance on their jobs by providing good training programmes and facilities.
  • The welfare of employees must be adequately taken care of.

 

 (III)    Responsibilities of business to investors

  • Engaging in profitable ventures that will generate the needed dividend or returns on investors’ money.
  • Ensuring that investors have a good return on their investment.
  • Conducting annual general meetings as contained in the articles of association.
  • Preparation and publication of all statutory records i.e. balance sheet and statement of income.

                  

(IV)    Responsibilities of business to society

  • Creation of employment opportunities to the host community.
  • Provision of social amenities such as hospitals, pipe-borne water and electricity.
  • Awarding scholarship to deserving individuals in society.
  • Organizing sports and games to promote good neighbourliness.
  • Provision of quality goods and services to society.
  • Maintaining a good environment by controlling pollution and enabling proper waste disposal.
You May Also Like